APNewsBreak: SC gov candidate cites bookkeeping experience but family company had tax issues

SC had tax liens against gov hopeful’s family biz

COLUMBIA, S.C. — A business owned by the family of South Carolina Republican gubernatorial candidate Nikki Haley has been penalized for failing to pay taxes three times since 2003, according to records obtained by The Associated Press.

Haley has frequently cited her experience as an accountant for her family’s clothing store, saying the state needs such business knowledge at its helm.

Records show the store’s taxes were at least 19 months past due each time the state filed a lien.

Two of the tax liens were for failing to pay corporate income taxes and one was for not turning over taxes withheld from employee checks. The company paid nearly $4,000 to remove the liens.

In response, Haley’s campaign said Thurday she is running for governor in part because she wants to cut red tape and taxes that are too burdensome. Her campaign declined to discuss the specifics of the liens.

“As a family, we saw how hard it was to make a dollar and how easy it was for government to take it,” Haley, a state House member, said in a statement. “I’m committed to making government friendlier to the people and businesses it serves.”

A key part of Haley’s economic plan is to eliminate corporate income taxes, an idea the Legislature rejected earlier this year.

Last month, a review of Haley’s personal income taxes since 2004 showed she has repeatedly paid fines for failing to pay them on time, including twice filing more than 14 months late.

Tax experts say a state tax lien is filed only after long negotiations between the government and the business. They also say the withholding penalty is more serious, since it involves the company taking money from employees but not sending it to the government.

“The government really frowns on withholding not being paid because that’s the employee’s money,” said Marilyn Landis of the National Small Business Association. However, she says, it’s the more common offense for ill-equipped small businesses.

The campaign of Haley’s opponent, Democrat Vincent Sheheen, says characterizing the taking of your employees’ money as red tape is a fundamental misunderstanding of the law.

“Every time she touches a balance sheet, she leaves behind a tral of tax liens and penalties. If Rep. Haley really is an accountant, she is as incompetent as her mentor is at job recruitment,” Sheheen spokesman Trav Robertson said, referring to Gov. Mark Sanford and the state’s struggles with record-high unemployment.